Trump Media Abandons $6.4 Billion Crypto Deal Amid Market Downturn

Trump Media and Crypto.com have backed out of their crypto deals, including a $6.4 billion agreement for a Cronos treasury company, citing current market conditions.

The firms blamed the market downturn for their decision, which led to CRO falling by 12% in response. The move is not surprising given the struggles of digital asset treasuries (DATs), with many now sitting on billions in unrealized losses due to a massive drop in crypto prices.

Crypto treasury strategies have seen a significant pullback in interest over the past few months, and the termination of the deal may be beneficial for the crypto industry as it could mean less regulatory scrutiny of Trump's crypto dealings. Crypto.com CEO Kris Marszalek stated that moving forward under current market conditions 'doesn't make sense', and the exchange will pursue other ETF opportunities.